PPI Higher Than Expected Markets A Bit Lower
FOMC and CPI next week!
So the headline printed higher MoM than expected +0.3% (exp. 0.2% ex food and energy). YoY PPI is at +7.4%, which was lower than the 8.0% in the prior month. One thing that is important to note, and maybe the reason why equities which were first hit, did rebound only to fall again late in the day, is the fact that M2 destruction as a forecaster should pave the way for lower input costs and pricing moving forward:
The equity markets took the initial news and were promptly sent to new lows but rebounded for most of the day till the late afternoon session which saw the markets falter again. It seems like Vwap supports are becoming the magnet and more of a consolidative tone for now rather than rolling over. However the prospects for stops to get run to the downside increase as we continue to probe these lower bands:
